scholarly journals The price bubble morphology

2013 ◽  
Vol 13 (1) ◽  
pp. 76-94 ◽  
Author(s):  
Waldemar Tyc
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Economic System ◽  
Institutional Environment ◽  
Real Estate Market ◽  
Economic Systems ◽  
The Real Estate ◽  
Price Bubbles ◽  
Price Bubble ◽  
The Real Estate Market

Abstract The article presents a discourse on the mechanism by which price bubbles emerge and burst. For idealization purposes the author assumes that even though price bubbles emerge in various markets, their morphology differs from market to market, be it the hi-tech stock (or, more generally, the stock market), the real estate market (where land is of fixed supply) or the housing market. The sources of their diversification lie in the type and weight of the causes of their appearance, the differences between their causative and functional determinants and the market feedbacks. Any interpretation of the nomological diversification of price bubbles (in the sense of their categorisation) requires looking at the system pragmatics and the market in which they emerge. Thus the designations of economic systems and the specifics of markets constitute both the economic and the institutional environment of their origin. They also constitute the necessary context for their understanding and interpretation, as price bubbles rise and collapse within specific functional structures of an economic system.

scholarly journals Price Bubble In The Real Estate Market - Behavioral Aspects

2014 ◽  
Vol 22 (1) ◽  
pp. 77-90 ◽  
Author(s):  
Justyna Brzezicka ◽  
Radosław Wisniewski
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Herd Behavior ◽  
Negative Consequences ◽  
The Real ◽  
The Real Estate ◽  
Price Bubbles ◽  
Price Bubble ◽  
The Real Estate Market ◽  
Behavioral Aspects

Abstract The article pertains to the topic of speculative price bubbles which arise in the real estate market. The individual parts of the article deal with the connection between the price bubble in the American real estate market and the global economic crisis, defining the concept of a price bubble with regard to the behaviors of market participants, providing a description of the environment generating price bubbles, and systematizing the reasons behind the formation of price bubbles. The analysis of behavioral aspects accompanying the existence of a price bubble is a key issue. The assumed considerations indicate that the housing price bubble could not exist in the real estate market (REM) if its formation was not accompanied by behavioral aspects. These aspects include, among others, giving in to temptations and emotions, limited rationalism, herd behavior, and seeking to make profits in a short amount of time at the expense of long-term negative consequences. The nature of these deliberations is theoretical.

scholarly journals Evaluation of factors leading to formation of price-bubbles in the real estate market of Lithuania

2015 ◽  
Vol 16 (4) ◽  
pp. 345-352
Author(s):  
Audrius Dzikevičius ◽  
Lukas Kazlauskas ◽  
Šarūnas Bruzgė
Keyword(s):  
Regression Analysis ◽  
Real Estate ◽  
Business Cycles ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Price Bubbles ◽  
Correlation And Regression Analysis ◽  
Price Bubble ◽  
The Real Estate Market

Recently, real estate market has been discussed more frequently in the framework of economic analysis. The global economic crisis of 2008 has demonstrated the severity of financial shock that can be caused by inconsiderate investments in the real estate market. The present article analyses business cycles and the phenomenon of a price-bubble in that context. Drawing on the analysis of reference literature we identify the main reasons that can lead to fluctuations of prices in the real estate market. Finally, drawing on correlation and regression analysis we determine which factors have the strongest influence on the Lithuanian real estate market.

scholarly journals Impacts of COVID-19 on the Real Estate Market in the Czech Republic

2021 ◽  
Vol 91 ◽  
pp. 01028
Author(s):  
Eduard Hromada
Keyword(s):  
Czech Republic ◽  
Real Estate ◽  
Housing Market ◽  
Real Estate Market ◽  
The Czech Republic ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Real Estate Advertising

The article deals with the description of the impacts of COVID-19 on the real estate market in the Czech Republic. The article focuses on the housing market - sales and rentals of apartments. The article contains graphs that show the development before COVID-19 and during COVID-19. Trends are indicated as the real estate market will develop in the next period. All results published in this article were created using the EVAL software, which the author of the article has been developing since 2007. This software continuously maps real estate advertising within all cities in the Czech Republic.

scholarly journals Price Bubbles in the Real Estate Markets - Analysis and Prediction

2022 ◽  
Vol 19 ◽  
pp. 292-303
Author(s):  
Paweł Dec ◽  
Gabriel Główka ◽  
Piotr Masiukiewicz
Keyword(s):  
Real Estate ◽  
Predictive Analytics ◽  
Real Estate Market ◽  
Point Of View ◽  
Subprime Crisis ◽  
The Real ◽  
The Real Estate ◽  
Price Bubbles ◽  
The Real Estate Market ◽  
The Government

The article concerns the issue of price bubbles on the markets, with particular emphasis on the specificity of the real estate market. Up till now, more than a decade after the subprime crisis, there is no accurate enough method to predict price movements, their culmination and, eventually, the burst of price and speculative bubbles on the markets. Hence, the main goal of the article is to present the possibility of early detection of price bubbles and their consequences from the point of view of the surveyed managers. The following research hypothesis was verified: price bubbles on the real estate market cannot be excluded, therefore constant monitoring and predictive analytics of this market are needed. In addition to standard research methods (desk research or statistical analysis), the authors conducted their own survey on a group of randomly selected managers from Portugal and Poland in the context of their attitude to crises and price bubbles. The obtained results allowed us to conclude that managers in both analysed countries are different relating the effects of price bubbles to the activities of their own companies but are similar (about 40% of respondents) expecting quick detection and deactivation of emerging bubbles by the government or by central bank. Nearly 40% of Polish and Portuguese managers claimed that the consequences of crises must include an increased responsibility of managers for their decisions, especially those leading to failures.

Normalisation of the Speculative Frame Method and Its Application to the Housing Market in Poland

2021 ◽  
Vol 8 (1) ◽  
pp. 36-46
Author(s):  
Justyna Brzezicka ◽  
◽  
Radosław Wisniewski ◽  
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Time Series Data ◽  
Real Estate Market ◽  
Series Data ◽  
Data Sets ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Frame Method ◽  
Real Estate Prices

This article proposes the normalisation of the speculative frame method for identifying real estate bubbles, price shocks, and other disturbances in the real estate market. This index-based method relies on time series data and real estate prices. In this article, the speculative frame method was elaborated and normalised with the use of equations for normalising data sets and research methodologies. The method is discussed on the example of the Polish housing market.

scholarly journals Listing of Developer Companies as a Predictor of the Situation on the Residential Real Estate Market

2018 ◽  
Vol 26 (4) ◽  
pp. 12-21
Author(s):  
Rafal Wolski
Keyword(s):  
Real Estate ◽  
Stock Market ◽  
Housing Market ◽  
Stock Exchange ◽  
Real Estate Market ◽  
Residential Real Estate ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Secondary Housing Market

Abstract The stock exchange is considered one of the most important financial institutions in the market economy. The stock market reacts to the state of the economy almost immediately, and, in the end, the quotations of companies affect the state of other markets. The author decided to look at companies from the WIG Real Estate index as important entities shaping the real estate market. When comparing the situation on the capital market with the situation on the residential real estate market, one could, building an appropriate model, conclude how much these markets interact. Purpose - The purpose of the article is to present the links between two important markets, the capital market, with real estate companies as its representatives, and the secondary housing market. In order to achieve the goal, a research hypothesis was formulated: the economic situation on the real estate companies market will be reflected in the situation on the secondary housing market. Design/methodology/approach - Cross-sectional regression analysis was used in the study. Using the data from the Warsaw Stock Exchange and the National Bank of Poland, regression models where price changes in the secondary housing market are explained by the quotations of real estate companies and selected stock exchange indices were built. The study was carried out from the first quarter of 2011 to the third quarter of 2017. Findings - Two models were built in which the rates of return on investments in real estate companies explain the price changes in the secondary housing market in a statistically significant way. Thus, the research hypothesis was positively verified, showing that the real estate market and the stock market of real estate companies are interrelated. Originality/Value - The alternative method of analyzing the real estate market can be considered as the original value of the presented results. A demonstration of the connections between both markets allows us to validate the methods used on the stock market to analyze the real estate market. An example application is the use of methods for estimating the cost of capital from the stock market in the real estate market.

scholarly journals Speculative Bubbles and their Components on the Real Estate Market–A Preliminary Analysis

2016 ◽  
Vol 24 (1) ◽  
pp. 87-99 ◽  
Author(s):  
Justyna Brzezicka
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Market Prices ◽  
Speculative Bubble ◽  
The Real ◽  
The Real Estate ◽  
Speculative Bubbles ◽  
Price Bubbles ◽  
The Real Estate Market ◽  
Over Time

Abstract Various speculative phenomena arise on the real estate market, and the speculative bubble (SB) is one of the best known events of the type. Speculative bubbles still have many unidentified components, and are characterized by high research potential due to the multiple factors responsible for bubble creation, as well as considerable practical implications on account of the multivariate results describing the real estate market (REM) and its surroundings. Speculative price bubbles are associated mainly with changes in price trends on the real estate market. A thorough analysis of a speculative bubble over time demonstrates trend changes also in other research categories which constitute bubble components and elements of the real estate market and its surroundings. The above criteria were used to identify a new research category termed speculative bubble components (SBC). The research hypothesis states that speculative bubbles should be analyzed based not only on prices, but also on bubble components. The objectives of this study were to: 1) classify speculative phenomena on the REM, 2) describe a speculative bubble based on market prices and SBC, and 3) present the results of a study evaluating speculative bubble components in relation to market prices, and discuss the trajectories of the analyzed research categories over time. This study attempts to determine whether a speculative bubble can be analyzed in view of its components, and which elements of the real estate market and its surroundings can be classified as SBC. Attempts were also made to identify a research method that supports the identification of SBC variables and classification of variables into groups, and explains market prices in view of the identified variables and groups. The research relies on a review of literature in the theoretical part and statistical analyses in the experimental part. The results will broaden our knowledge of the mechanisms behind speculative phenomena on the real estate market.

scholarly journals Historical development of the concept of segmentation in the housing market and emergence of approaches towards segmentation

2021 ◽  
pp. 1-8
Author(s):  
Sesegma Rinchinovna Sondueva
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Historical Development ◽  
Real Estate Market ◽  
The Real Estate ◽  
Requirements Change ◽  
The Real Estate Market ◽  
Residential Market ◽  
Post Hoc ◽  
Mass Marketing

The subject of this research is the development of the concept of segmentation in the housing market and emergence of approaches towards segmentation. The object of is the term “segmentation” and approaches towards this method. The author examines the historical development of this concept, as well as the criteria for segmentation of commodities. Description is given to the methods of segmentation in the marketing sphere. The author determines the methods used for segmentation of real estate objects, as well as the variants of structurization and segmentation of the real estate market. The advantages of market segmentation in comparison with the traditional method of mass marketing are outlined. The author reveals that the concept of segmentation has existed for over 70 years. There are two traditional methods of segmentation used worldwide: “post hoc” and “a priory”. Segmentation of residential market is conducted via “a priory” method. The author detects the method used for segmentation of residential objects and the criteria in studying the residential market. The need for segmentation of residential objects is substantiated by the fact that consumer requirements change over time, and segmentation allows determining the target audience and preferences of the potential customers.

scholarly journals RESEARCH OF FEATURES OF RENT MARKET DEVELOPMENT

2021 ◽  
Vol 1 (161) ◽  
pp. 116-123
Author(s):  
S. Kobzan ◽  
A. Ivakhnenko ◽  
M. Tolsta
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Real Estate Market ◽  
Residential Real Estate ◽  
The Real ◽  
The Real Estate ◽  
Rental Market ◽  
The Real Estate Market ◽  
The Cost ◽  
The City

The purpose of the article is to conduct a study of the rental market as a separate segment of the real estate market in urban development. A study of the rental market in Kharkiv was conducted. The relevance of the study is to determine the prospects for the development of modern urban economy, taking into account the development of the rental market. The question of the dependence of the rent on the cost of housing and the profitability of certain segments of the housing market is determined. An improved classification of different segments of housing in the modern city is given. An analysis of the cost of rent for each segment and depending on the location. Factors that significantly affect the cost of rent have been studied. Conclusions are made about the future development of the rental market in the municipal economy. In urban planning and urban planning it is extremely important to take into account the prospects and development of such a market segment as the rental market of residential real estate. The relevance of the study is to determine the prospects for the development of modern urban economy, taking into account the development of the rental market. The residential real estate rental market is a very important component for the development of the city in Kharkiv. The issue of researching the apartment rental market is relevant and will be deeply analyzed in the future. To achieve this goal, the following tasks are set in the work: Analyze the rental market. Develop an improved classification of segmentation in the residential real estate market. Conduct research on the factors that affect the cost of rent. Develop a GIS model of the impact of rental costs depending on the area of the city. Build a detailed table of the dependence of the cost of rent on the location. Investigate the interaction in the real estate rental market and sales within urban development. The rental price is influenced by the following factors: - trends of growth or decline of the general state of the real estate market as a whole; - seasonality; - the distance of the district from the city center; - the presence of a transport interchange; - ecology, in the area where the object is located; - developed infrastructure; - level of housing comfort; - the duration of the lease; - number of rooms; - the presence of repairs; - type and condition of the building in which the dwelling is located. The article examines the rental housing market. Defined rental rates: minimum, average and maximum cost. Charts of dependence of cost of rent on a segment and a location are constructed. The housing market is developing despite the unstable economic situation, the devaluation of the hryvnia and declining incomes. The cost of renting an apartment depends on the location, condition of the house, transport infrastructure and the condition of the real estate. The hotel rental market is developing very actively. In Kharkov, in most cases, buy small apartments and hotels for investment (income from further rent). With the help of GOOGLE MAP, a map of the dependence of the average cost of renting hotels and 1-bedroom, 2-bedroom, 3-bedroom apartments on the location in the areas of Kharkiv was developed.

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